Hong Kong has a mature payment card market with 25 million cards in circulation and 3.5 cards per consumer on average. China UnionPay is the fastest growing card scheme and makes up over half of newly issued cards. While payment cards are widely used, credit cards are particularly popular for e-commerce due to their convenience. Mobile proximity payments are seen as beneficial but have security concerns. The payment landscape is forecast to experience continued growth in cards, e-commerce and mobile payments in the coming years.

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Consumer Payments Country
Snapshot: Hong Kong
09/11/2016

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Hong Kong is a unique payment market in Asia 2
Hong Kong represents a mature payment card market in Asia, with 25 million payment cards in issue and
a population of over 7 million. Despite a high card per customer ratio, Hong Kong is expected to see mild
growth in both card numbers and transaction values over the coming years. China UnionPay is the fastest
growing card scheme in Hong Kong accounting for more than half the cards issued in 2015.
Contactless PaymentsE-commerce
Hong Kong consumers hold an average
of 3.5 cards per person. Pay-later cards
are the fastest growing payment
segment in Hong Kong, mostly driven by
the popularity of credit cards.
Payment Cards
Hong King represents a HK$67bn online
commerce market. Credit card is the
number one payment tool for online
commerce with customers highlighting
convenience as a top factor.
DebitCredit
20% 11% 9%
25% 16% 12%
Quick Facts
Cards per consumer in Hong Kong
Cards in Issue in 2015
Cards in circulation by 2020
3.5
26m
Quick Facts (by value spend)
Electrical goods
Clothing & FootwearFlights & hotelsElectrical goods
Hong Kong is ready to embrace mobile
proximity payments. Consumers see
the benefits but are concerned by the
security. 67% are worried about what
will happen if the contactless card is
lost or stolen.
30m
Food & drinkFlights & hotels

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Inbound Tourism – Hong Kong
2014: 48.6 million visitors
3

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Payments Infrastructure 4
AcquirerIssuer
Top 4 Merchant Acquirers in Hong Kong:
1.Citibank
2.Global Payments
3.Hang Seng Bank
4.Chine Union Pay
In Hong Kong, it is common practice for
merchants to rent or lease payment terminals
from the subsidiaries or banking institutions.
Top 5 Card Issuers in the UK:
1.HSBC (6.4m cards)
2.Hang Seng Bank (4.0m cards)
3.Bank of China Hong Kong (3.5m cards)
4.Standard Chartered (2.5m cards)
Schemes
China UnionPay is the fastest growing
scheme in Hong Kong, accounting for
more than half of all newly issued
branded credit cards in 2015.
Top 4 Card Schemes in the UK:
1.China UnionPay (17.0m cards)
2.Visa (4.6m cards)
3.MasterCard (2.4m cards)
4.EPS (1.1m cards)
84%
of all cards
in Issue (2015)
24%
Market share
25%
Debit card Credit card
66%
18%

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Market Size and Forecasting
23%
market
share
5.9m
cards
(2015)
6.6m
cards
(2020)
Debit
74%
market
share
19m
cards
(2015)
22.2m
cards
(2020)
Credit
27
times
on
average
HK$1,081
per POS
transaction
Pay-later cards are the fastest growing
payment card segment in Hong Kong,
mostly driven by the popularity of credit
cards
21
times
on
average
HK$2,167
per POS
transaction
5
Now Future Debit Credit
Pay-now cards are expected to
experience minimal growth in the coming
years, facing direct competition from
credit cards.

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12% CAGRR
2015-2020
E-COMMERCE
7% CAGRR
2015-2020
M-COMMERCE
6
The value of Hong Kong’s online payments market was
HK$67bn in 2015 – this is forecast to grow by almost
60% by 2020
54% of online commerce sales are e-commerce.
Online E-commerce
534
million
Number of online transactions made
by Hong Kong consumers in 2015
EPS is the largest electronic payments
system in Hong Kong while JETCO is the
biggest network of ATM’s in Hong Kong

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E-commerce and M-commerce
Mobile Proximity Payments
High smartphone penetration and positive consumer
sentiment represent significant opportunities for mobile
proximity payments in Hong Kong
38%
2.8 million
Smartphone
owners
A modest
opportunity for NFC-
based mobile based
services
28%
are ready for mobile payments at the POS
as soon as they are available
expressed interest in making contactless
payments via a mobile phone
7
Online spend by payment tool
HK$
25.1
billion
Worth of transactions were made
using credit and debit cards in 2015